Profits fall at SBAB

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Swedish state-owned mortgage lender SBAB saw operating profits fall sharply in the first nine months of 2007. The value of the company's bond portfolio fell sharply following the instability on the credit markets earlier in the autumn.

The company's operating profits were 286 million kronor for the period. compared with 667 million kronor in the same period last year.

Excluding the value of the company's bonds, operating profits were almost unchanged at 661 million kronor.

"Like all other market participants who have a liquidity reserve in the form of bonds, we have seen a reduction in the market value during the third quarter. This is a result of the turbulence in the credit market during the period. Our holding is long-term and we make the assessment that the change in market value will be recovered over time," said CEO Eva Cederbalk in a statement.

New lending to the retail market fell to 15.6 billion from 21.4 billion kronor.

SBAB is one of the company's earmarked for sale by the Swedish government.